Texas 2019 - 86th Regular

Texas House Bill HB1816 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R8320 TJB-D
2	2	By: Beckley H.B. No. 1816
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem tax protests and appeals on the ground of the
8	8	unequal appraisal of property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 41.43, Tax Code, is amended by amending
11	11	Subsection (b) and adding Subsections (e) and (f) to read as
12	12	follows:
13	13	(b) A protest on the ground of unequal appraisal of property
14	14	shall be determined in favor of the protesting party unless the
15	15	appraisal district establishes that:
16	16	(1) the appraisal ratio of the property is equal to or
17	17	less than the median level of appraisal of a reasonable and
18	18	representative sample of other properties in the appraisal
19	19	district;
20	20	(2) the appraisal ratio of the property is equal to or
21	21	less than the median level of appraisal of a sample of properties in
22	22	the appraisal district consisting of a reasonable number of other
23	23	properties similarly situated to, or of the same general kind or
24	24	character as, the property subject to the protest; or
25	25	(3) the appraisal ratio [appraised value] of the
26	26	property is equal to or less than the median level of appraisal
27	27	[appraised value] of a reasonable number of comparable properties
28	28	in the appraisal district [appropriately adjusted].
29	29	(e) For the purpose of Subsection (b)(3):
30	30	(1) a person making a determination that property is
31	31	comparable to another property must base the determination on the
32	32	similarity of the properties with regard to the characteristics
33	33	described by Section 23.013(d); and
34	34	(2) a person calculating the median level of appraisal
35	35	of comparable properties must base the calculation on the appraised
36	36	value of each comparable property as shown in the appraisal records
37	37	submitted to the appraisal review board by the chief appraiser
38	38	under Section 25.22 or 25.23.
39	39	(f) The comptroller shall by rule establish standards for
40	40	the development and calibration of adjustments to the appraised
41	41	value for industrial, petrochemical refining and processing, and
42	42	utility properties and other unique properties.
43	43	SECTION 2. Section 42.26, Tax Code, is amended by amending
44	44	Subsections (a) and (b) and adding Subsections (e) and (f) to read
45	45	as follows:
46	46	(a) The district court shall grant relief on the ground that
47	47	a property is appraised unequally if:
48	48	(1) the appraisal ratio of the property exceeds by at
49	49	least 10 percent the median level of appraisal of a reasonable and
50	50	representative sample of other properties in the appraisal
51	51	district;
52	52	(2) the appraisal ratio of the property exceeds by at
53	53	least 10 percent the median level of appraisal of a sample of
54	54	properties in the appraisal district consisting of a reasonable
55	55	number of other properties similarly situated to, or of the same
56	56	general kind or character as, the property subject to the appeal; or
57	57	(3) the appraisal ratio [appraised value] of the
58	58	property exceeds by at least 10 percent the median level of
59	59	appraisal [appraised value] of a reasonable number of comparable
60	60	properties in the appraisal district [appropriately adjusted].
61	61	(b) If a property owner is entitled to relief under a
62	62	subdivision of Subsection (a) [(a)(1)], the court shall order the
63	63	property's appraised value changed to the value as calculated on
64	64	the basis of the median level of appraisal according to that
65	65	subdivision [Subsection (a)(1). If a property owner is entitled to
66	66	relief under Subsection (a)(2), the court shall order the
67	67	property's appraised value changed to the value calculated on the
68	68	basis of the median level of appraisal according to Subsection
69	69	(a)(2). If a property owner is entitled to relief under Subsection
70	70	(a)(3), the court shall order the property's appraised value
71	71	changed to the value calculated on the basis of the median appraised
72	72	value according to Subsection (a)(3)]. If a property owner is
73	73	entitled to relief under more than one subdivision of Subsection
74	74	(a), the court shall order the property's appraised value changed
75	75	to the value that results in the lowest appraised value. The court
76	76	shall determine each applicable median level of appraisal [or
77	77	median appraised value] according to law, and is not required to
78	78	adopt the median level of appraisal [or median appraised value]
79	79	proposed by a party to the appeal. The court may not limit or deny
80	80	relief to the property owner entitled to relief under a subdivision
81	81	of Subsection (a) because the appraised value determined according
82	82	to another subdivision of Subsection (a) results in a higher
83	83	appraised value.
84	84	(e) For the purpose of Subsection (a)(3):
85	85	(1) a person making a determination that property is
86	86	comparable to another property must base the determination on the
87	87	similarity of the properties with regard to the characteristics
88	88	described by Section 23.013(d); and
89	89	(2) a person calculating the median level of appraisal
90	90	of comparable properties must base the calculation on the appraised
91	91	value of each comparable property as shown in the appraisal records
92	92	certified by the chief appraiser under Section 26.01.
93	93	(f) The comptroller shall by rule establish standards for
94	94	the development and calibration of adjustments to the appraised
95	95	value for industrial, petrochemical refining and processing, and
96	96	utility properties and other unique properties.
97	97	SECTION 3. Section 42.29, Tax Code, is amended by amending
98	98	Subsection (b) and adding Subsection (c) to read as follows:
99	99	(b) Notwithstanding Subsection (a), the amount of an award
100	100	of attorney's fees to a property owner may not exceed the lesser of:
101	101	(1) $100,000; or
102	102	(2) the total amount by which the property owner's tax
103	103	liability is reduced as a result of the appeal.
104	104	(c) An appraisal district, an appraisal review board, or a
105	105	chief appraiser that prevails in an appeal under Section 42.26 may
106	106	be awarded reasonable attorney's fees. The amount of the award may
107	107	not exceed $15,000.
108	108	SECTION 4. Not later than January 1, 2020, the comptroller
109	109	shall establish the standards required by Sections 41.43(f) and
110	110	42.26(f), Tax Code, as added by this Act.
111	111	SECTION 5. Section 41.43, Tax Code, as amended by this Act,
112	112	applies only to a protest under Chapter 41, Tax Code, for which a
113	113	notice of protest is filed on or after the effective date of this
114	114	Act. A protest under Chapter 41, Tax Code, for which a notice of
115	115	protest was filed before the effective date of this Act is governed
116	116	by the law in effect on the date the notice of protest was filed, and
117	117	the former law is continued in effect for that purpose.
118	118	SECTION 6. Sections 42.26 and 42.29, Tax Code, as amended by
119	119	this Act, apply only to an appeal under Chapter 42, Tax Code, for
120	120	which a petition for review is filed on or after the effective date
121	121	of this Act. An appeal under Chapter 42, Tax Code, for which a
122	122	petition for review was filed before the effective date of this Act
123	123	is governed by the law in effect on the date the petition for review
124	124	was filed, and the former law is continued in effect for that
125	125	purpose.
126	126	SECTION 7. This Act takes effect September 1, 2019.